(Washington Insider Magazine) – Raising investment and exports, the main objectives in the face of rising inflation.
Inflation Looks to be The Biggest Threat to The World’s Economies in 2023
To the already depleted coffers of the governments of all countries following the COVID-19 crisis, is now added the energy crisis following the invasion of Ukraine by Russia. Since the Kremlin decided to go to war on kyiv just under a year ago, inflation has soared across much of the international community, challenging the economic stability of many them.
In this context, Morocco tried to act quickly to mitigate the effects of the war. Inflation, but also energy shortages due to the interruption of energy supplies – also linked to the diplomatic crisis with Algeria – have put the Alaouite kingdom on the ropes. However, the country of Mohammed VI has launched a large number of initiatives which, in addition to having supported the economy in 2022, should bear even more fruit in 2023, which promises to be a difficult year for all economies. of the world.
Exports are the basis of much of the Kingdom’s economy. And this is largely due to the agricultural sector, which contributes 14% of gross domestic product (GDP). One of the problems with this importance of agriculture is the reliance on the weather pattern and level of rainfall to drive production. However, the year 2022 has left a positive trend in this regard, positioning Morocco as one of the largest fruit exporters in the world. Thanks, among other things, to this, Rabat has achieved economic growth of 1.5%, a figure that is expected to increase to 4% in 2023.
To achieve this, the government led by Aziz Akhannouch believes that increasing investment is another of the pillars on which the country must rely to face the crisis. The objective is to increase private investments, which currently represent only one third of total investments, and bring them to two thirds, in order to contribute more to the country’s economy. It also aims to stimulate these investments through a series of financial and tax incentives aimed at private companies, thus boosting the confidence of potential investors in this period of uncertainty.
Riyad Mazour, Minister of Industry and Trade, highlighted investments in the industrial sector. It is expected to experience strong growth in 2023, which should also create 100,000 new jobs, as well as the activation of the Mohammed VI Fund for Foreign Investment. All this, as well as the initiative launched in October by King Mohammed VI, aimed at injecting investments of 50 billion dollars over five years, in cooperation between the government and the private and banking sectors, to create 500,000 new jobs.
This article is originally published on atalayar.com